EJF Investments Ltd Recent Investment Announcement (8312I)
December 16 2020 - 1:00AM
UK Regulatory
TIDMEJFI TIDMEJFZ
RNS Number : 8312I
EJF Investments Ltd
16 December 2020
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE
REPUBLIC OF IRELAND), AUSTRALIA, CANADA, SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE IT IS UNLAWFUL TO DO SO
16 December 2020
EJF Investments Ltd
Recent Investment Announcement
The Board of EJF Investments Ltd (together with its
subsidiaries, "EJFI" or the "Company") is pleased to announce that
the Company invested approximately GBP6.7 million(1) in the
preferred shares (the "Investment") issued by TruPS Financials Note
Securitization 2020-2 ("TFINS 2020-2") on 15 December 2020.
The underlying collateral of TFINS 2020-2 mainly consists of
trust preferred securities, subordinated debt, senior notes and
surplus notes issued by 26 U.S. banks and 10 insurance companies
with an aggregate par value of approximately US$177.245 million.
The Investment represents the Company's tenth risk retention
investment in a securitisation sponsored by EJF Capital LLC ("EJF")
and represents the continuation of the Company's focus on equity
tranches of collateralised debt obligations backed primarily by US
small and medium banks and insurance companies.
Approximately 40% of the collateral is indexed to three-month
LIBOR, while the balance of the collateral is fixed rate. The
weighted average spread of the floating assets is approximately
3.58%. Approximately 14% of the underlying securities have a fixed
interest rate with a weighted average coupon of approximately 7.0%.
The remaining 46% of the underlying securities have a
fixed-to-float interest rate. TFINS 2020-2 has a final maturity
date in 2041 and is callable after October 2022 at the option of
the majority preferred shareholders, with mandatory auction calls
commencing after October 2028. Anticipated return scenarios
estimate that the Investment will generate a gross return in the
high single digits over the estimated life of the Investment.
EJF CDO Manager LLC ("CDO Manager") will serve as the collateral
manager for TFINS 2020-2 and will receive a 30-basis points p.a.
fee in addition to earning an incentive management fee equal to 20%
of profits over a 10% hurdle, subject to certain exceptions. The
Company will also benefit from the economics generated by the CDO
Manager through the Company's 49% ownership interest in the CDO
Manager.
(1) As converted using a GBP/USD foreign exchange rate of
1.3448
ENQUIRIES
For the Investment Manager
EJF Investments Manager LLC
Peter Stage / Hammad Khan / Matthew Gill
pstage@ejfcap.com / hkhan@ejfcap.com / mgill@ejfcap.com
+44 203 752 6775 / +44 203 752 6771 / +44 203 752 6774
For the Company Secretary and Administrator
BNP Paribas Securities Services S.C.A
jersey.bp2s.ejf.cosec@bnpparibas.com
+44 1534 709 181 / +44 1534 813 996
For the Broker
Numis Securities Limited
David Luck
d.luck@numis.com
+44 20 7260 1301
About EJF Investments Ltd
EJFI is a registered closed-ended limited liability company
incorporated in Jersey under the Companies (Jersey) Law 1991, as
amended, on 20 October 2016 with registered number 122353. The
Company is regulated by the Jersey Financial Services Commission
(the "JFSC"). The JFSC is protected by both the Collective
Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the
discharge of its functions under such laws.
The JFSC has not reviewed or approved this announcement.
LEI: 549300XZYEQCLA1ZAT25
Investor information & warnings
The latest available information on the Company can be accessed
via its website at www.ejfi.com.
This communication has been issued by, and is the sole
responsibility of, the Company and is for information purposes
only. It is not, and is not intended to be an invitation,
inducement, offer or solicitation to deal in the shares of the
Company. The price and value of shares in the Company and the
income from them may go down as well as up and investors may not
get back the full amount invested on disposal of shares in the
Company. An investment in the Company should be considered only as
part of a balanced portfolio of which it should not form a
disproportionate part. Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before
making any investment decision.
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END
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